Since Mohammed bin Salman became Crown Prince of Saudi Arabia, his tenure has been marked by ambitious and extravagant projects aimed at transforming the Kingdom’s economic landscape. However, these grand visions have come at a significant cost to the average Saudi citizen, particularly in the housing sector. The sharp rise in housing rents and the apparent neglect of affordable housing development have raised serious concerns about the Crown Prince’s priorities and the long-term impact of his policies on the country’s socio-economic fabric.
Housing Crisis in the Kingdom
In recent years, Saudi Arabia has witnessed a dramatic increase in housing costs, particularly in the capital, Riyadh. Rental prices have surged by 31% over the past 18 months, with the cost of a typical residence rising from 10,000 SAR in December 2022 to over 13,000 SAR by July 2024. This surge is largely attributed to the Crown Prince’s focus on demolishing affordable residential areas to make way for entertainment districts and other luxury developments, rather than investing in new housing for the growing population.
The lack of affordable housing options has led to a significant decline in the number of residential real estate transactions. Reports indicate that housing unit prices have soared by nearly 60% over the past three years, leading to a 16% drop in the number of residential sales deals in the past year alone. Overall, the total number of real estate transactions across all categories fell by 17% in 2023, with the value of these transactions dropping by 9%, according to a recent report by Knight Frank.
Extravagant Projects Amid Rising Costs
While ordinary Saudis struggle with rising living costs, the Crown Prince has been pouring billions of dollars into massive projects like Neom and “The Line,” both part of his Vision 2030 plan. These projects are envisioned as futuristic cities that would redefine urban living, but they are also seen as vanity projects that prioritize international prestige over the immediate needs of Saudi citizens.
“The Line,” in particular, has garnered significant attention, both for its ambitious scale and for the controversies surrounding it. The project, a linear city that stretches across the desert, has faced criticism for being technologically and financially unfeasible. Reports suggest that construction on “The Line” has slowed or even stopped due to funding shortages, with some insiders claiming that the project may never be completed. Moreover, accusations have surfaced that the concept for “The Line” was not original, with comparisons being drawn to earlier designs by Kuwaiti and Italian architects.
Neom, another centerpiece of the Crown Prince’s Vision 2030, has similarly faced setbacks. Despite the initial fanfare, the project has reportedly stalled due to financial constraints, and the Crown Prince has allegedly ordered a media blackout on Neom to avoid further scrutiny.
Public Discontent and Misaligned Priorities
The Crown Prince’s focus on these high-profile projects has drawn criticism from many Saudi citizens, who argue that their immediate needs are being overlooked. The Kingdom’s growing population is more concerned with practical issues such as affordable housing, sufficient salaries, and lower taxes, rather than with the futuristic visions of flying cars and robot servants. The failure to address these basic needs has led to increasing frustration among the populace, who view these projects as out of touch with the realities of daily life in Saudi Arabia.
As global inflation continues to rise, there are growing calls for the Crown Prince to reassess his spending priorities. Experts suggest that it may be necessary to scale back or delay some of these grandiose projects in favor of more pressing issues like housing, public transportation, and basic infrastructure. The idea that Saudi citizens would benefit more from improved metro systems and intercity railways than from a futuristic city in the desert is gaining traction.
Mohammed bin Salman’s ambitious plans to reshape Saudi Arabia are undoubtedly bold, but they come with significant risks. As housing costs continue to rise and public discontent grows, it is clear that there needs to be a recalibration of priorities. The Kingdom’s future depends not just on visionary projects, but on addressing the immediate needs of its people. Without this balance, the Crown Prince’s dreams of modernization may remain just that—dreams that fail to materialize, leaving ordinary Saudis to bear the brunt of the fallout.
